1 When the federal government uses taxation and spending actions to stimulate the economy it is conducting fiscal policy incomes policy monetary policy employment policy 2 Refer to the graph.  What combination would most likely cause a shift from AD1 to AD3? Increases in taxes and government spending Decrease in taxes and increase in government spending Increase in taxes and decrease in government spending Decreases in taxes and government spending

Economics (MindTap Course List)
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Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government
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1 When the federal government uses taxation and spending actions to stimulate the economy it is conducting

fiscal policy

incomes policy

monetary policy

employment policy

2 Refer to the graph.  What combination would most likely cause a shift from AD1 to AD3?

Increases in taxes and government spending

Decrease in taxes and increase in government spending

Increase in taxes and decrease in government spending

Decreases in taxes and government spending

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